Federal Employees to Receive Retirement Credit in for Unused Sick Leave
Federal employees under the Federal Employees Retirement System will receive credit for their unused sick leave in their retirement calculations. President Barack Obama signed the provision, which is part of the 2010 Defense Authorization Act, into law last week.
Under the measure, which takes effect immediately, employees who retire before January 1, 2014 will receive half of their banked sick leave. Those who retire after January 1, 2014 will receive 100 percent of their unused leave credited toward their annuities. Be aware, the law credits only those employees who take an immediate annuity. Employees who retire now but delay benefits until years later, under a deferred or delayed retirement, will not get credit for unused sick leave.
The OPM estimates that employees taking excessive sick leave cost the government $68 million a year in lost productivity. Many long term FERS employees take excessive leave late in their careers to take advantage of the benefit. The change gives employees a monetary incentive to bank their sick leave and this, in turn, may increase employee attendance and productivity.